What is Standard Deduction?

Article ID: 34218  

Question
What is Standard Deduction?

Answer

he standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2014 than it was for 2013. The amount depends on your filing status. You can use the 2014 Standard Deduction Tables to figure your standard deduction.

 

Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. If you have a choice, you can use the method that gives you the lower tax.

 

The standard deduction is a dollar amount that reduces your taxable income. It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). The standard deduction is higher for taxpayers who:

 

  • Are 65 or older, or

  • Are blind.

The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether another taxpayer can claim an exemption for you. Generally, the standard deduction amounts are adjusted each year for inflation. The standard deduction amounts for most people are shown in Table 20-1.

 

 

 

 


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Views: 669 Created on: Jun 15, 2013